Electric Car Boom Drives Rush to Mining’s $90 Billion Hub – by David Stringer (Bloomberg News – August 7, 2017)

 

https://www.bloomberg.com/

A scramble by the lithium market’s biggest players to tie up supply of the high-tech metal is gathering pace in the 170-year-old heartland of Australia’s $90 billion mining industry.

Rising Chinese demand for lithium-ion batteries needed for electric vehicles and energy storage is driving significant price gains and an asset boom in Australia, already the world’s largest lithium producer. The fast-developing hub is drawing investment and deals from global producers as well as chemical-to-battery manufacturers in China, the top consumer.

Western Australia has four operations in production and three more major projects being advanced to begin output. Major players are likely to continue to scope for deals in the state to secure supply for the next 20 or 30 years, according to consultant Benchmark Mineral Intelligence.

“There are serious companies investing and people are starting to lock up the biggest, long-life resources. The question is — who’s next?” Simon Moores, managing director of Benchmark Mineral, said by phone from London. Though on a smaller scale, “it’s a land grab like in the petroleum industry when BP, Shell and others rounded on the Middle East in the 1960s and 1970s,” he said.

Greenbushes in Western Australia, the world’s biggest hard-rock lithium mine, is being expanded to more than double annual capacity, Talison Lithium, a joint venture between China’s Tianqi Lithium Corp. and North Carolina’s Albemarle Corp., said in an email.

For the rest of this article: https://www.bloomberg.com/news/articles/2017-08-06/electric-car-boom-drives-rush-to-mining-s-90-billion-heartland

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